Today, you have $30,000 to invest. Two investment alternatives are available to you. One would require...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Today, you have $30,000 to invest. Two investment alternatives are available to you. One would require you to invest your $30,000 now; the other would require the $30,000 investment two years from now. In either case, the investments will end five years from now. The cash flows for each alternative are provided below. Using a MARR of 11%, what should you do with the $30,000 you have? Year 0 1 2 3 45 Alternative 1 - $30.000 $12,000 $12,000 $12,000 $14,000 $10,000 Alternative 2 SO SO -$30,000 $16,500 $16,500 $16,500 More Infor N 1 2 3 4 5 6719 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 30 35 40 45 50 Single Payment Compound Amount Factor To Find F Given P AP 1.1100 1.2321 1.3676 1.5181 1.6851 1.8704 2.0762 2.3045 25580 2.8394 3.1518 3.4985 3.8833 4.3104 4.7845 5.3109 5.8951 6.5436 7.2633 8.0623 Discrete Compounding; -11% 8.9492 9.9336 11:0263 12.2392 13.5855 22.8923 Present Worth Factor To Find P Given F PIF 0.9009 0.8116 0.7312 0.6587 0.5935 0.5346 0.4817 0.4339 0 3909 Compound Amount Factor To Find F Given A RA 1.0000 2.1100 3.3421 4.7097 6.2278 0.3522 0.3173 0.2858 0.2575 0.2320 0 2090 0.1883 0.1696 0.1528 0.1377 0.1240 0.1117 0.1007 0.0907 0.0817 102.1742 0.0736 114.4133 0.0437 199.0209 38.5749 0.0259 341.5896 65.0009 0.0154 581.8261 109.5302 0.0091 986 6386 184.5648 0.0054 1668.7712 7.9129 9.7833 11.0594 14 1640 16.7220 19.5614 22.7132 26.2116 30.0949 34 4054 39.1899 44.5008 50.3959 56.9395 64.2028 72.2651 81.2143 91 1479 Uniform Series Present Worth Factor To Find P Given A PIA 0.9009 1.7125 2.4437 3.1024 3.6959 4.2305 4.7122 5.1461 5.5370 5.8892 6.2065 6.4924 6.7499 6.9819 7. 1909 7.3792 7.5488 7.7016 7.8393 7.9633 8.0751 8.1757 8.2664 8.3481 8.4217 8.6938 8.8552 8.9511 9.0079 9.0417 Sinking Fund Factor To Find A Given F A/F 1.0000 0.4739 0.2992 0.2123 0.1606 0.1264 0.1022 0.0043 0.0706 0.0598 0.0511 0.0440 0.0382 0.0332 0.0291 0.0255 0.0225 0.0198 0.0176 0.0156 0.0138 0.0123 0.0110 0.0098 0.0087 0.0050 0.0029 0.0017 0.0010 0.0006 Capital Recovery Factor To Find A Given P AIP 1.1100 0.5839 0.4092 0.3223 0:2706 0 2364 0.2122 0.1943 0.1806 0.1698 0.1611 0.1540 0.1482 0.1432 0.1391 0.1355 0.1325 0.1298 0.1276 0.1256 0.1238 0.1223 0.1210 0.1198 0.1187 0.1150 0.1129 0.1117 0.1110 0.1106 Today, you have $30,000 to invest. Two investment alternatives are available to you. One would require you to invest your $30,000 now; the other would require the $30,000 investment two years from now. In either case, the investments will end five years from now. The cash flows for each alternative are provided below. Using a MARR of 11%, what should you do with the $30,000 you have? Year 0 1 2 3 45 Alternative 1 - $30.000 $12,000 $12,000 $12,000 $14,000 $10,000 Alternative 2 SO SO -$30,000 $16,500 $16,500 $16,500 More Infor N 1 2 3 4 5 6719 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 30 35 40 45 50 Single Payment Compound Amount Factor To Find F Given P AP 1.1100 1.2321 1.3676 1.5181 1.6851 1.8704 2.0762 2.3045 25580 2.8394 3.1518 3.4985 3.8833 4.3104 4.7845 5.3109 5.8951 6.5436 7.2633 8.0623 Discrete Compounding; -11% 8.9492 9.9336 11:0263 12.2392 13.5855 22.8923 Present Worth Factor To Find P Given F PIF 0.9009 0.8116 0.7312 0.6587 0.5935 0.5346 0.4817 0.4339 0 3909 Compound Amount Factor To Find F Given A RA 1.0000 2.1100 3.3421 4.7097 6.2278 0.3522 0.3173 0.2858 0.2575 0.2320 0 2090 0.1883 0.1696 0.1528 0.1377 0.1240 0.1117 0.1007 0.0907 0.0817 102.1742 0.0736 114.4133 0.0437 199.0209 38.5749 0.0259 341.5896 65.0009 0.0154 581.8261 109.5302 0.0091 986 6386 184.5648 0.0054 1668.7712 7.9129 9.7833 11.0594 14 1640 16.7220 19.5614 22.7132 26.2116 30.0949 34 4054 39.1899 44.5008 50.3959 56.9395 64.2028 72.2651 81.2143 91 1479 Uniform Series Present Worth Factor To Find P Given A PIA 0.9009 1.7125 2.4437 3.1024 3.6959 4.2305 4.7122 5.1461 5.5370 5.8892 6.2065 6.4924 6.7499 6.9819 7. 1909 7.3792 7.5488 7.7016 7.8393 7.9633 8.0751 8.1757 8.2664 8.3481 8.4217 8.6938 8.8552 8.9511 9.0079 9.0417 Sinking Fund Factor To Find A Given F A/F 1.0000 0.4739 0.2992 0.2123 0.1606 0.1264 0.1022 0.0043 0.0706 0.0598 0.0511 0.0440 0.0382 0.0332 0.0291 0.0255 0.0225 0.0198 0.0176 0.0156 0.0138 0.0123 0.0110 0.0098 0.0087 0.0050 0.0029 0.0017 0.0010 0.0006 Capital Recovery Factor To Find A Given P AIP 1.1100 0.5839 0.4092 0.3223 0:2706 0 2364 0.2122 0.1943 0.1806 0.1698 0.1611 0.1540 0.1482 0.1432 0.1391 0.1355 0.1325 0.1298 0.1276 0.1256 0.1238 0.1223 0.1210 0.1198 0.1187 0.1150 0.1129 0.1117 0.1110 0.1106
Expert Answer:
Related Book For
Contemporary Business Mathematics with Canadian Applications
ISBN: 978-0133052312
10th edition
Authors: S. A. Hummelbrunner, Kelly Halliday, K. Suzanne Coombs
Posted Date:
Students also viewed these finance questions
-
Sunrise Bakery Expansion The Sunrise Bakery Corporation was originally founded in Houston, TX in 1991 by Griffin Harris, who currently serves as the company's Chief Executive Officer. About four...
-
What is the present value (PV) of $300,000 received six years from now, assuming the interest rate is 10% per year?
-
Capstone Case: Sunrise Bakery Expansion The Sunrise Bakery Corporation was originally founded in Houston, TX in 1991 by Griffin Harris, who currently serves as the company's Chief Executive Officer....
-
Ethelbert.com is a young software company owned by two entrepreneurs. It currently needs to raise $400,000 to support its expansion plans. A venture capitalist is prepared to provide the cash in...
-
Make a table showing the sign conventions for mirrors and lenses. Include the sign convention for the mirrors and lenses themselves and for the image and object heights and distances for each.
-
A 100-g ball collides elastically with a 300-g ball that is at rest. If the 100-g ball was traveling in the positive x - direction at 5.00 m/s before the collision, what are the velocities of the two...
-
There are several exceptions to the hearsay rule. Identify at least three exceptions and give an example of each.
-
Levesque Company makes and sells lawn mowers for which it currently makes the engines. It has an opportunity to purchase the engines from a reliable manufacturer. The annual costs of making the...
-
Purpose This assessment item is a powerpoint slidedeck of the student's views in relation to the six (6) geographical regions of [1] Australia, [2] USA, [3] Eurozone, [4] Japan, [5] China, and, [6]...
-
Demello & Associates records adjusting entries on an annual basis. The company has the following information available on accruals that must be recorded for the year ended December 31, 2024: 1....
-
1. Based on the information given below, calculate the WACC of the company: 11.065%. Its capital structure consists of 45 percent debt and 55 percent common equity. The company has 20-year bonds...
-
How do environmental factors interact with genotypic information to influence the development of specific traits or the onset of complex diseases like diabetes or schizophrenia ?
-
A fish is able to jump vertically out of the water with a speed of 4 . 4 m / s . How much time in seconds does it take for the fish to pass a point 0 . 5 m above the water on the way down?
-
For the month of September, Florida, Inc., incurs a direct materials cost of $ 1 2 , 0 0 0 for 7 , 5 0 0 gallons of strawberry lemonade produced in its Mixing Department. It also incurs conversion...
-
Discuss the impact of single-nucleotide polymorphisms (SNPs) and other types of genetic variation on disease susceptibility and personalized medicine .
-
A 10.0 kg crate slides down a frictionless surface inclined at 30.0 relative to the horizontal. a. Draw a Free Body Diagram for this situation. b. Determine the magnitude of the parallel component of...
-
You are owed $5,000 in compensation by your employer. Your ordinary income tax rate is always 25% and your capital gains tax rate is always 10%. You can take the compensation currently or you can...
-
What are the principal differences among asset liquidity management, liability management, and balanced liquidity management?
-
Solve each of the following systems of equations and check your solutions. (a). x + y = 9 x y = 7 (b). x + 5y = 0 x + 2y = 6 (c). 5x + 2y = 74 7x 2y = 46 (d). 2x + 9y = 13 2x 3y = 23 (e). y = 3x...
-
Glenn has made contributions of $250 at the end of every 3 months into an RRSP for 10 years. Interest for the first 10 years was 4% compounded quarterly. (a) What is the amount in the RRSP after the...
-
Santucci Appliances received an invoice dated August 12 with terms 3/10 E.O.M. for the items listed below: 5 GE refrigerators at $980 each less 25% and 5%; 4 Inglis dishwashers at $696 each less 16...
-
__________________ and __________________ are lowered to increase the camber of the wings and provide greater lift and control at slow speeds.
-
If the failure of a structure causes a loss of control of the aircraft or leads to a catastrophic structural collapse, the structure is classified as __________________ structure.
-
Wing sweepback is designed to delay or alleviate shock induced separation of airflow and improves aerodynamic performance.
Study smarter with the SolutionInn App